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Dog-themed cryptocurrency Shiba Inu (SHIB) is approaching a critical resistance point where an enormous 422 trillion SHIB are being held. This substantial supply wall has led to questions about the token's next potential move.
At the time of writing, SHIB was marginally up 0.77% in the last 24 hours to $0.000017.
According to IntoTheBlock data, there is a massive barrier next to where the Shiba Inu price is now trading, where 422.85 trillion SHIB are being held by 35,600 Shiba Inu addresses in the range between $0.000018 and $0.000019.
This 422 trillion SHIB resistance level represents a significant hurdle, which might impact SHIB's ability to rise further in the short term.
This is because the enormous amount of SHIB held may cause the price to experience high selling pressure in the $0.000018 to $0.000019 range as many of these addresses will try to sell once the market price reaches their average cost and break-even point for their positions. This will serve as a resistance level against further price increases in this range.
What's next for Shiba Inu price?
Shiba Inu’s price trajectory depends largely on how it can tackle this substantial 422 trillion SHIB wall. Shiba Inu bulls must strive to gain fresh momentum while attracting enough buying interest to overcome this significant resistance.
If successful, Shiba Inu could unlock new price levels, though for now, traders might need patience as the token confronts this major supply barrier.
A rally in the broader cryptocurrency market, especially in the meme coin sector, could reignite buying interest in SHIB and push prices above resistance levels.
Technically, the Shiba Inu price is locked in a range between its daily moving averages of 50 and 200, which are $0.0000164 and $0.0000186, respectively. A break in either direction could indicate Shiba Inu's next short-term move.
If SHIB breaks out to the upside, it may target $0.0000216 ahead of $0.0000263. On the other hand, a breakdown below the daily SMA 50 might cause SHIB to exit its current trading range and return to the lower part of its larger range, with support at $0.000012.